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10 Steps to Implementing a Performance Management System

Performance management software
Table of Contents

Performance management has evolved and become more efficient during the last few years. Most of these programs leave a bad taste in the mouth and be a reason for attrition. But organizations have worked around ensuring that the process is more efficient and robust.

There are several reasons that performance management must be effective, and the most crucial factor is that it relates to people, and which makes it more important

What is a performance management system?

A performance management system is a process that helps organizations to evaluate the performance of an individual and their contribution to the organization. It helps in monitoring the goals and their progress. This process helps in sharing feedback and understanding the learning requirements of an individual.

An extremely critical process that requires constant updates and improvements. Organizations spend time streamlining this process and continue introducing new methods to make the process more bias-free and transparent.

Benefits of the performance management system

There is the various way in which a performance management system benefits individuals and organizations. Some organizations conduct bi-yearly, and some follow the yearly process. The outcome of the program helps in

1. Compensation

The foremost outcome of the process is to help organizations and managers to understand the performance of an individual and how to reward him for the contributions made by him. This is mostly done through salary revision and the revised salary becomes the new and increased compensation for an employee.

2. Motivation

Another key influence of the process is that this motivates the employees to do better and gives feedback to understand the gap between what is expected and what is delivered.


3. Organizational goal view

The process gives a clear picture of where my organization is traveling and what are their expectations vis-a-vis where am I currently.

4. Learning Needs

Evaluating an individual on a defined process helps to understand the learning requirements of the role he/she is performing. This help in designing the training needs of an individual.

10 steps to implementing a performance management system